NC labor commissioner ends ‘death discount’ in workplace fatality cases

RALEIGH, NC (WWAY) — North Carolina Labor Commissioner Luke Farley announced a policy change eliminating penalty reductions in workplace fatality cases.

For decades, North Carolina’s workplace safety enforcement mirrored a federal Occupational Safety and Health Administration policy that allowed penalties to be reduced based on the size of a business, even in cases involving a worker’s death. In some cases, those reductions lowered penalties by as much as 70 percent, a practice workplace safety advocates referred to as the “death discount.”

Farley said the change is part of a broader effort to strengthen worker safety across the state.

“When a fatality occurs due to workplace safety failures, our response must reflect the gravity of that loss — fully and without dilution,” Farley said.

Effective immediately, the North Carolina Department of Labor will no longer apply penalty reductions in cases involving worker deaths. Officials say the updated directive ensures enforcement actions reflect the seriousness of a fatality, regardless of a company’s size.

The department said civil penalties are a key enforcement tool used to reinforce workplace safety standards, deter negligence and ensure employers meet their legal obligations to protect workers.

While acknowledging concerns from small business owners, Farley said support should come through compliance assistance rather than reduced penalties.

“The right way to support small businesses is through education, outreach, and resources that help them operate safely,” he said. “Discounting the value of a human life does not serve workers or employers.”